press release

Red Hot Chili Peppers take over the John Paul Jones Arena

UVA cashing in on arena even when Cavs hit road

By ED MILLER, The Virginian-Pilot
© February 27, 2007

CHARLOTTESVILLE - You never know who you might bump into in the hallway at John Paul Jones Arena these days.

In the nearly nine months since the arena opened, Darlene Craig, a longtime secretary in the University of Virginia's athletic media relations department, has glanced out her office window near the arena floor and seen wrestlers Hulk Hogan and Ric "Nature Boy" Flair stroll by. She also spotted a sinewy man with long dark hair and tattooed arms she couldn't identify but assumed must have been a worker of some kind.

It was Anthony Kiedis, lead singer of the Red Hot Chili Peppers. A crowd of nearly 13,000 watched Kiedis and his bandmates perform that evening, and though fans probably didn't know it, their ticket sales will indirectly benefit Virginia's sports teams. Revenue from concerts and other non-basketball events covers the roughly $3 million annual operating budget on the $129 million arena, where the Cavaliers are unbeaten in ACC play this season. Any profit from those events goes into a fund for maintenance and improvements to the arena, keeping it spiffy for fans and future basketball recruits.

It's the sort of relationship between college athletics and entertainment that exists at other venues, like Old Dominion's Constant Center, but on a bigger scale. Virginia's new building is the largest arena in the state.

Built with private funds, the arena was regarded by some as an expensive gamble. Its total cost is projected to be $191 million, including costs for audio-visuals, a dining hall, fund-raising expenses and interest on bonds over 20 years.

Thus far, anyway, it has been a roaring success, on track to exceed attendance and revenue goals for both basketball and non-basketball events.

"The John Paul Jones Arena is the buzz of central Virginia," said Todd Goodale, the school's director of marketing and video services.

Earlier this month, a concert industry group called Pollstar voted the arena the nation's best new concert venue. Billy Joel played last week, the country group Rascal Flatts the week before. Eric Clapton, James Taylor, the Dave Matthews Band and country stars Kenny Chesney and George Strait have also stopped through. The arena has hosted professional wrestling, "Disney on Ice," the circus, and other events that would have never played University Hall, the 40-year-old arena it replaced.

On the court, Virginia is the only ACC team unbeaten at home in conference play. A crowd of 14,564 watched the Cavaliers beat Georgia Tech Saturday afternoon. Virginia drew crowds of 15,219 for Arizona and 15,169 for Duke. Another huge crowd is expected for Virginia Tech on Thursday night.

Nervous about their ability to fill the new venue, athletic department officials set an attendance goal of 11,000 per game. With one home game left, U.Va. is averaging 13,433.

Revenue from men's basketball tickets is expected to be about $3.6 million, more than twice the $1.74 million taken in last season at 8,392-seat University Hall. Basketball will turn a profit, though it is unclear exactly how much. Jon Oliver, executive associate director of athletics, said he will not have a full accounting of the building's expenses until the end of the season.

Money from men's basketball goes to support many other sports that don't pay for themselves.

Virginia has had to spend money to make money at the new building, pumping roughly $500,000 into marketing, halftime entertainment and in-game promotions.

"It is light years ahead of what we were doing at U-Hall," Oliver said.

At the new arena, there's rarely a quiet or unfilled moment during a game. T-shirts are fired from cannons or dropped via parachute from the rafters, a "smile-and-smooch" camera encourages couples to pucker up, highlights play on the scoreboard video screen, fans can participate in a variety of promotions and contests.

All the bells and whistles would not mean as much if the arena were not still a novelty and the Virginia team was not enjoying its best season since 2001, playing an up-tempo style that showcases two of the best guards in the nation, Sean Singletary and J.R. Reynolds.

Singletary, who played two seasons at University Hall, said the new arena has exceeded his expectations.

"Our fans have been incredible, giving us great support," he said. "In return, we give them wins."

A winning team and new arena have also spurred an increase in student attendance - from about 1,200 per game at U-Hall to 2,300 at the new building. About 8,000 seats are taken by season-ticket holders, many of them donors to the Virginia Athletics Foundation who have paid as much as $250,000 for courtside seats for 20 years.

At those prices, $500 for the best seats for Justin Timberlake, who is coming next month, looks like a bargain.

The building's concert marketing is handled by SMG, an entertainment and concert venue management company that receives a $120,000 annual fee from the University to manage the building. SMG can make more money if it meets revenue targets.

The university's contract with SMG set a first-year gross revenue target of $3.63 million for non-basketball events. The arena should exceed that goal, with an expected take of about $4 million, said Rich Kovatch, the university's associate vice president for business operations.

Larry Wilson, the building's general manager, said the company has tried to book shows to appeal to fans of different musical genres and all walks of life.

"If you can sell tickets, you can get the shows," he said. "It's a combination of marketing, a beautiful facility, and the act."

Wilson flew to Los Angeles to pick up the Pollstar Award, which is voted on by agents and promoters. Just a week later, Oliver headed to Las Vegas for the NBA All-Star Game to "steal ideas," he joked. "I can't guarantee wins," he said. "But I can do my best to make sure people have a great time."

Both Oliver and Wilson are already looking ahead to next season, when the novelty of the building will have worn off a bit, tickets could be a harder sell, and, in time, maybe even celebrity sightings could become more routine.

VMDO Architects was founded in 1976 and is the youngest firm to receive the T. David Fitz-Gibbon Virginia Architecture Award, the most prestigious honor given by the Virginia Society of American Institute of Architects.

For further information, interview, and photography opportunities in reference to this project and VMDO Architects, please contact William Bishop at 434.296.5684, email at bishop@vmdo.com.